Selling Rules

MACD histogram must be in right color, red for downtrend (or whatever color you chose on the custom MACD indicator)

MACD Moving Average must be “within” the colored area of the MACD histogram

When price goes up and hits the 15ema and bounces back down or goes up through the 15ema and reverses back it is a sell trade signal as long as the following conditions are met: the low of the candlestick is not more than 50 pips away from the 15 EMA and 15 EMA must not be “within” the 50 EMA channels.

The trade setup candlestick is the candle that touches the 15 ema OR passes through it but makes a lower low, which means, it breaks the low of the previous candlestick. On this candlestick, you set a sell stop order 2-5 pips (allow for spread) below its low to catch the downward breakout of price move.

This chart explains what it means to have the MA of MACD “within” the histogram (read lines etc), this is for a sell setup:

Here’s an example of a sell trading setup:

Buying Rules

For buying, you do the exact opposite of what you do in sell setup, but here are the trading rules:

MACD histogram must be in right color,green for uptrend

MACD Moving Average must be “within” the colored green area of the MACD histogram

When price goes down and hits the 15ema and bounces back up or goes down through the 15ema and reverses back it is a buy trade signal as long as the following conditions are met: the high of the candlestick not more than 50 pips away from the 15 EMA and 15 EMA must not be “within” the 50 EMA channels.

The trade setup candlestick is the candle that touches the 15 ema OR passes through it but makes a higher high, which means, it breaks the high of the previous candlestick. On this candlestick, you set a buy stop order 2-5 pips (allow for spread) above its high to catch the upward breakout if it happens.

Place you stop loss at 100 pips.

Take profit target at 100 pips.

Move trailing stop to break even at 50 pips.

Disadvantages of the 1hr Forex Trading Strategy With MACD

MACD and Moving Average are all lagging indicators, so there always the late entry factor right there.

the system will not perform well in a ranging market

Advantages of the 1hr Forex Trading Strategy With MACD

in a strong trending market, expect to makes some good profitable pips with this trading system.